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Unformatted text preview: increased by more than $1 billion.
c) increased by $1 billion.
Use the following to answer questions 8-9: PAE
PAE=500+.9Y 8. Based on the Keynesian cross diagram, at short-run equilibrium output autonomous
expenditure equals _____ and induced expenditure equals ______.
a) 5900, 6000 b) 500, 4500 c) 500, 5000 d) 500, 5900 e) 5450, 5500
9. Based on the Keynesian cross diagram, if output equals 4,000 planned aggregate
expenditure is _____ output and firms will ____ production.
a) less than; increase
d) greater than; decrease
b) equal to; not change
e) greater than; increase
c) less than; decrease Page 3 of 11 ECO 2013 – Section 0008 – QUIZ IV – Version 1
O. Mikhail – http://www.bus.ucf.edu/omikhail 10. Coca Cola's "smart" vending machine is designed to provide:
a) output at preset prices.
b) more flexible pricing of products.
c) greater sensitivity to consumer complaints and concerns.
d) a less expensive vending machine.
e) higher levels of output.
11. During the 1960s and 1970s, the U.S. trade balance was close to zero, but during the
1980s the trade deficit ballooned to unprecedented levels due to:
a) a worldwide recession that made it difficult for American companies to sell their
b) an inability of U.S. companies to compete in the international market.
c) a decline in private saving that resulted from an upsurge in consumption.
d) unfair protectionist policies imposed by America's major trade partners.
e) a decline in national saving caused la...
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This note was uploaded on 03/31/2012 for the course ECON 112 taught by Professor Merinoff during the Spring '12 term at SUNY Jefferson.
- Spring '12